Expanding the IT Services Business by Creating Synergy and Leveraging the Knowhow of the Two Companies Hitachi Systems, Ltd. is pleased to announce that Micro Clinic India Pvt. Ltd., an IT services company based in the Republic of India ("India"), has been converted to a Group company based on a share purchase agreement and a shareholders' agreement.
(PressReleasePoint) -TOKYO, JAPAN and NEW DELHI, India - April 16, 2014
Hitachi Systems, Ltd. is pleased to announce that Micro Clinic India Pvt. Ltd., an IT services company based in the Republic of India ("India"), has been converted to a Group company based on a share purchase agreement and a shareholders' agreement. The company started operations as Hitachi Systems Micro Clinic Pvt. Ltd. ("Hitachi Systems Micro Clinic") as of April 3 when the procedures for changing company names were completed.
In India, demand for IT services is growing rapidly due to the accelerating pace at which Japanese and other foreign companies are entering the Indian market, and the expanding investment in IT as local Indian companies grow their businesses. Hitachi, Ltd. (TSE:6501) sees India as an important region in its global strategy and is stepping up development of the Hitachi Group's Social Innovation Business in the country. Hitachi aims to grow consolidated net sales in India by nearly three times to 300 billion yen(173.4 billion rupees) by the fiscal year ending March 31, 2016, compared with the fiscal year ended March 31, 2012.
Aiming to secure and expand the business platform for IT services in India where the economy is growing at a rapid pace, Hitachi Systems, the core company for information and telecommunication systems in the Hitachi Group, is pleased to welcome Hitachi Systems Micro Clinic into the Group at this time.
Hitachi Systems, Ltd. is one of leading IT services company in Japan with strengths in high-quality operations and maintenance services. Hitachi Systems works closely with customers through a network of roughly 300 service sites and contact centers across Japan, through which it offers a wide range of business system design and integration services, and outsourcing services that take advantage of its robust data center infrastructure. Hitachi Systems Micro Clinic is one of India's leading IT services companies with a total of 15 business sites in major cities and approximately 150 satellite offices across India, and provides a broad range of IT services focused on supplying IT platforms and providing maintenance services. By combining the products, services, technologies, knowhow, and business resources of the two companies, Hitachi Systems Micro Clinic is planning the expansion of its business with a view to creating early synergy such as newly providing data center services, 24/7 high quality managed services, cloud services and boosting virtualization services. By investing aggressively in human resources and those new business to expand the range of solutions, and by adding the Hitachi products to its product line-up, Hitachi Systems Micro Clinic will provide local corporations as well as foreign corporations including Japanese companies, with a one-stop service ranging from procuring IT equipment in India to system design and construction, operation and maintenance with the aim to approximately 2.4 billion rupees(approx. 4.2 billion yen) by the fiscal year ending March 31, 2016 compared with the fiscal year ended March 31, 2014.
The Hitachi Systems Group is deploying various measures aimed at achieving revenues of 500 billion yen( 289 billion rupees ) and an overseas sales ratio of 10% in fiscal 2015 as outlined under its medium-term management plan. The present acquisition is aimed at achieving these targets by strengthening and expanding the business in both India and the Asian region.
Mr. Yoshinori Okami, Chairman and Director of Hitachi Systems Micro Clinic Pvt. Ltd. said " It gives me great pleasure to welcome Hitachi Systems Micro Clinic into the Hitachi Systems Group. The combination of more than 600 excellent engineers, as well as a strong customer platform of more than 200 clients at Hitachi Systems Micro Clinic, with the advanced IT technology, data centers and other infrastructure that Hitachi Systems has nurtured in Japan over more than half a century will not only contribute to the development of the Indian economy, which continues to grow at a spectacular rate, but also provide superior services that impress customers in East Asia and worldwide."
Mr. Tarun Seth, Managing Director of Hitachi Systems Micro Clinic Pvt. Ltd. said, "It is honor for Micro Clinic to be acquired by Hitachi Systems. Now the most exciting era begins for Hitachi Systems Micro Clinic in India. We have very aggressive growth plans in India. We will be introducing a bouquet of new services and add new products to our portfolio to increase our revenues with existing customers and acquire new customers. We will expand our presence in India, add Human Capital and also make this as the base to expand in Asia and Middle East. It will be our endeavor to make this a successful venture so that Hitachi group and other Japanese companies continue and increase their investments in India."
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About Hitachi Systems Micro Clinic (as of April 3, 2014)
Hitachi Systems Micro Clinic Pvt. Ltd.
November 22, 1993
E-44/2, Okhla Industrial Area, Phase - II, New Delhi - 110 020, India
Tarun Seth, Managing Director
12.5 million rupees (21.6million yen, converted at 1.73 yen = 1 rupee)
Number of employees
About 650 (incl. Group company)
Hardware sales and maintenance, systems integration, network integration, security services, virtualization services, managed services, desktop services
Naoya Takahashi, President and Chief Executive Officer
19,162 million yen (As of March 31, 2013)
339,956 million yen (for the fiscal year ended March 31, 2013)
Number of employees
10,851 (As of March 31, 2013)
Systems integration business, systems operation, monitoring and maintenance business, network services business and sale and development of information-related equipment and software
About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 326,000 employees worldwide. The company's consolidated revenues for fiscal 2012 (ended March 31, 2013) totaled 9,041 billion yen ($96.1 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional material & components, automotive systems and others.
For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
About Hitachi in India
Hitachi started its business in India in the 1930's. Currently, Hitachi has approximately 30 business bases and approximately 7,500 employees in India. In addition to being a leader in construction machinery and air-conditioning systems, the Hitachi Group in India is expanding on its 'Social Innovation Business', such as information & telecommunication systems, power systems, industrial, transportation and urban development systems. Together with further localization, Hitachi aims to contribute to a sustainable society in India as well as the country's economic growth. For more information about the Hitachi Group in India, please visit the website at http://www.hitachi.co.in/.
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